Hormuz Crisis Drives Asian Energy Security Reassessment

The June-July 2026 shutdown of the Strait of Hormuz after U.S. and Israeli strikes on Iran cut roughly 20 % of world oil output, forcing a drawdown of reserves. Exxon Mobil’s Neil Chapman warned “we’re approaching unheard-of inventory levels,” highlighting supply fragility.

The Globe and Mail (Toronto)

India’s 2024-25 energy mix remains import-heavy: 89 % of crude oil, 50 % of natural gas and 25 % of coal were sourced abroad. The Hormuz route supplied 47 % of crude, 95 % of LPG and 64 % of LNG, and 73 % of urea and 43 % of fertiliser imports. Malaysia reported sufficient fuel stocks through July, extending supplies into August; one-third of its electricity comes from domestically produced LNG.

How the Hormuz crisis can push India towards energy securityThe Globe and Mail (Toronto)

India’s senior analyst Saswata Chaudhury sees the crisis as a catalyst for clean-fuel pilots like plasma electric stoves, dimethyl ether and compressed biogas. Malaysia’s economic adviser Nurhisham Hussein emphasized that ensuring sufficient fuel supplies is the top priority and that demand management is key during a hot summer. Hitachi Energy CEO Wolf Mueller highlighted the need to accelerate renewables, electrification and grid investment to reduce exposure to volatile fossil-fuel dependencies, noting China’s diversified mix gives it a favorable security position.

How the Hormuz crisis can push India towards energy security

India’s green electricity generation stays at 27 % of output, limiting grid stability. Battery storage and rare-earth supplies—dominated by China—are bottlenecks for large-scale electrification. Green fuels remain costly and unscaled. The EV market, projected at 23 million sales in 2026 (?30 % of cars), diversifies demand but deepens reliance on Chinese batteries and components, raising supply-chain concerns.

How the Hormuz crisis can push India towards energy security

• “The current oil-induced crisis reinforces the need to accelerate renewables, electrification, and grid investment to reduce exposure to volatile global fossil fuel dependencies.” — Wolf Mueller, CEO, Hitachi Energy

China Daily

• “The first priority is making sure we have enough supplies. As far as fuel is concerned, we have sufficient stocks until July, and we are already working on August.” — Nurhisham Hussein, Prime Minister’s Economic Adviser, Malaysia

Malaysia weathers 100 days of global energy crisis, supplies remain stable

• “We’re approaching unheard-of inventory levels,” — Neil Chapman, Senior Vice-President, Exxon Mobil Corp.

The Globe and Mail (Toronto)

• “Electric car sales set new records in close to 100 countries last year. The growing popularity of EVs has marked a major shift for car markets and the energy system as a whole – and it is providing some relief now amid the largest oil supply shock in history,” — Fatih Birol, Executive Director, IEA

Close to 30% of cars sold this year are set to be electric as countries and consumers respond to energy crisis

A cease-fire could reopen Hormuz within weeks, but shipping may stay below pre-conflict levels for months. India

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